Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-01-17
AGTI-POOLING BILL.
Representative Moore's Bill to Pre-
vent Insurance Companies Pool
ing on Their Rates.
The Insurance People Already Organ
izing TO Protect Themselves by OPP
posing the Measure.
Probability That Many Companies Would
Leave the State if the Proposed
Bill Became Law.
Special TO the Gazette.

AUSTIN, TES., Jan. l6.-The bill intro
Representative Moore of Travis to pro-
hibit insurance companies pooling on
their rates and business, has arou, ed the
insurance people to the necessity of pro-
tectiDg themselves by organizing to oppose
the measure. Last night kilograms were
received from New York morning papers
by local press representatives asking for
the text of the bill by wire. From the
fact of its Introduction and the probable
ity Of its passage, it is evident that the
insurance corporations East dung bust
ness in Ttxa5 adjudge their interests
menaced and want as full information
on the measure as they can obtain, to
enable them to quickly conclude what
course to pursue. A well-kncwu North
Texas insurance agent who Is temporarily
sojournIngys at the capital was to-day
questionedHby THE GAZETTE correspond
ent as to the effect of the measure on the
in -urance business and the probable &C
ton of accompanies, should the bill be-
come law. He said: "Well, it IS next
to impossibl for any state legislature to
prohibit insurance pooling. All the COM
panies will have to do is to move their
Texas offices into Arkansas or Louisiana
and give rates and write policies
on property in Texas, just as the man
ayers of the various railroads in Texas
meet together in st. Louis and agree
upon pool rates Of freight in this state in
violation of the law upon that
matter. But the worst trouble at
would be encount red should the
insurance companies pursue this
course would be that the insurance COM
missioner could and probably would re-
YOke the license of any company attempt
ing to evede the law in the manner sug-
gested. Ia that little matter the insur-
auce commissioner is little autOCrat,
because his powers are such that no at
torney would dare defend the companies
if they attempted to do bust
ness in Texas after being de-
prived of their license, for fear of
prosecution themselves for contempt of
court and violation of the lsw.
The legislature had better Ieave well
enough alone, and not pass this or any
other species of oppressive insurance
legislation. The companies for several
years past have found Texas anything but
to make them pack up and
fifty-six companies writing risks in Texas
Their capital an assets aggregate nearly
$500, 000, 900, and they give employment
to nearly 5000 men at good salaries.
Most Of these pm are citizens Of Texas,
and they and their families live IN aud
spend their earnings in the safe. The bill
ct Representative Moore may not in itself
be exceedingly severe or repree sive, but
ii that legislature starts to passing these
kind of laws there is no telling where the
matter will stop. They may so ass
another and compel each company TO de-
post in the state treasury $4,000 or
$50, 900 in order to be allowed to transact
business in the state, as New Hamp-
shire. and a few others have done,
and which the companies withdrew
from that state and even now New
cannot get a policy written in
New York. Suppose all the states,
thirty eight in Dumber, should require a
deposit of $780, from a company de-
sizing to do business in them? The ag-
gregate deposit would nearly amount
TO S2,000,000, On which not only |
no interest on the Investment would &C.
crue, but should disastrous fire occur
in Chicago, St. Louis or any other large |
city in which that particular company
had large risks and sustained heavy
losses, this great sum being tied up, the
would be forced to 60 bank
rupt, although in reality it would be one
Of the most solvent of insurance con-
Germs. In the event of such |
a calamity it could never get on It's feet
gain. While there IS nothing in Mr..
Moore's bill of this character, it is the
fear that one step taken by the legislature
will be followed by another in the same
direction, and ultimately make the situa-
ion unbearable for the companies
Therefore as a matter Of self protection it
S more than probable that many if not
Ill of the companies would leave the
state if the proposed bill should be
passed."
The agent making the above statement,
gave it as his opinion that a number of
veil known insurance men will be in
Austin to fight Mr.. Moore's bill, should
is success in the legislature be fore
,hadoWed.